Home prices cool after record-breaking August
Median prices in September, October lower than houses selling at same time last year
After reaching a historic high of $825,250 in August, median prices for single-family homes in Maui County have cooled somewhat, dipping in September and October to prices lower than they were at the same time last year.
The median price for a single-family home was $732,000 in October, a 5.5 percent decrease from October 2018, according to a Realtors Association of Maui report released earlier this month. Meanwhile, the median price in September was $719,718, a 4.6 percent decrease from September 2018.
A year-over-year drop in median home prices hasn’t happened in consecutive months since May and June of 2018. And, the recent prices are a change from last year, when the median price in October 2018 was $774,223, 15.8 percent more than the previous year, while the median price in September 2018 was $754,248, 16 percent more than the previous year.
The RAM report released this month shows that the single-family market saw more new listings in October (137 compared to 126), more pending sales (96 compared to 89) and more closed sales (104 compared to 88) than October 2018.
Overall inventory, however, was less — 453 homes for sale as compared to 497 at the same time last year. The homes were more affordable than in October 2018, earning a 46 on the affordability index as compared to 39. (The higher the number, the greater affordability; an index of 120, for example, means the median household income is 120 percent of what is necessary to qualify for the median-priced home.)
Homes that closed in October had been on the market for an average of 138 days, a 24.3 percent jump over the average of 111 days in October 2018.
The hottest markets for single-family homes were in Wailuku, where 24 homes were sold at a median price of $671,395; Kahului, where 16 homes sold at a median price of $672,000; and Kihei, where 14 homes sold at a median price of $752,500. The priciest markets were in Wailea-Makena, where six homes sold at a median price of $9,551,176; and Kapalua, where one home sold for $6 million.
On Molokai, two homes were sold at a median price of $403,500. On Lanai, one home was sold for $350,000.
Median single-family home prices each month have consistently been higher than they were at the same time last year. They’ve surpassed $800,000 twice — once in April when the $819,500 median price set a record since RAM started keeping track in 1993, and then again in August when the $825,250 median price (now adjusted from the $837,500 that RAM reported earlier) broke April’s record.
Condominium prices haven’t always spiked at the same time as home prices. The median prices in April and August were both lower than they were in the same months of 2018.
And while home prices dipped in October, condo prices rose to $515,800, a 3.2 percent increase as compared to the same time last year.
Last month, there were fewer new condo listings (154 compared to 171), slightly fewer sales (132 compared to 134) and the same number of pending sales (120) as compared to October 2018.
Like the housing market, overall inventory in the condo market was less — 468 as compared to 573 in October 2018. The affordability rating was better — 65 as compared to 61 last year.
Condos that sold in October were on the market an average of 149 days, as compared to an average of 156 days in 2018, a 4.5 percent decrease.
The most popular areas for condo sales were in Kihei, were 49 condos sold at a median price of $499,000; Kaanapali, where 23 condos sold at a median price of $1.89 million; and the Napili-Kahana-Honokowai area, where 26 condos sold at a median price of $473,800. Kapalua was the priciest market, where one condo sold for $2.85 million, followed by Kaanapali and then Wailea-Makena, where three condos sold at a median price of $1.52 million.
No condos were sold on Molokai or Lanai in October.
* Colleen Uechi can be reached at email@example.com.